Today’s Action
Nifty, +0.1%; Sensex, +0.2%; Nifty Midcap, -0.5%; Nifty Smallcap, -0.4%; Model Portfolio, +0.2%.
Market Pulse: Confirmed Uptrend
After a muted opening, Nifty quickly fell over 180 points within the first 30 minutes of the session. However, as the session progressed, Nifty staged an upside reversal to pare all its losses and managed to close in the green. Thus, it closed above 15,800 for the first time. Of the Nifty50 stocks, 50% closed in the green, led by Tata Motors (+1.5%) and Reliance Industries (+1.4%).
The majority of sectoral indices closed in the red. Nifty Realty (-1.5%) declined the most, followed by Nifty Media (-0.8%) and Nifty Metal (-0.7%). On the flipside, Nifty FMCG, Nifty IT, and Nifty PSU Bank gained 0.1-0.5%. The advance-decline ratio was in favor of decliners, as out of 2,303 stocks traded, 887 stocks advanced, 1,094 stocks declined, and the remaining closed flat.
Nifty is back trading at its all-time high, which is a good sign of further upside. One distribution day is set to expire during the week. However, if the index falls, adds a distribution day, and breaches its key moving averages, we may change the market status to an Uptend Under Pressure. Focus on quality ideas emerging out of sound bases with RS line at or near new highs while reducing exposure to stocks breaking below key support levels.
Key News
Indian Overseas Bank announced its Q4 FY21 results. Net interest income decreased 8.4% y/y to Rs 1,403 crore. PAT increased 143% to Rs 349 crore. Gross NPA improved to 11.69% q/q from 13.07%. Net NPA at 3.58% increased from 3.13%, a quarter ago.
Kajaria Ceramics’s Q4 FY21 revenue increased 46.1% y/y to Rs 952.5 crore. PAT rose 172% to Rs 131.2 crore. EBITDA margin improved to 20% from 14.3% in Q4 FY20.
Gayatri Projects Limited’s Q4 FY21 revenue increased 49.5% y/y to Rs 1,360 crore. It reported a profit of Rs 18.6 crore compared to a loss of Rs 81 crore in Q4 FY20.
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